Government PPE Contracts

Dawn Butler Excerpts

Tuesday 6th December 2022 Commons Chamber

[Angela Rayner]

My hon. Friend captures the mood of the public. They want answers—they want to know what happened to their money and what happened with these contracts at the time they most needed the Government to act responsibly—so we have tabled today’s motion and will put it to a vote.

Let me be clear. We are not asking the Government to do anything that would undermine any chance of recovering our money or anything that would conflict with any police investigation, but for 10 months they have told us that they are in mediation. What progress has been made? When will they conclude that the mediation has failed and take action? Can they actually get our money back or are they just kicking the can down the road?

Our motion asks Ministers to hand the records over to the Public Accounts Committee—a body that this House relies on to hold them to account for public spending—because the only logical conclusion is that they do indeed have something to hide. The public deserve answers on whether the dodgy lobbying at the heart of this scandal played a part in how vast sums of taxpayers’ cash have been wasted and whether shameful profiteering has been enabled by this Government.

That leads me to my second simple question for the House today: will Conservative Members—the few who are in—now vote for a clean-up or for yet another cover-up? Just last week, the Government led Tory Members in the other place through the Not Content Lobby to block amendment 72 to their Procurement Bill, which would have banned VIP lanes in future procurement decisions. They voted it down. They voted to protect unlawful VIP access instead of protecting taxpayers’ money.

The Prime Minister, fresh from writing off the billions he carelessly lost to covid fraud, is peddling legislation full of loopholes that would give Tory Ministers free rein to do it all over again. The question for the House is whether to act to prevent a repeat. Today, I say to Conservative right hon. and hon. Members: “Learn your lesson. Don’t let this shameful episode be repeated.”

The loss and trauma of the pandemic were immense. Millions of families lost loved ones—some only got to say goodbye via an iPad as mothers, fathers, husbands, wives and friends slipped away—and then we learned that throughout that trauma, companies with WhatsApp links to Ministers were given special VIP access to contracts that have seen billions poured down the drain.

This Government have done untold damage to the public’s faith in politics. The first step in restoring trust is publishing these documents today. The public need answers about how this happened and they need them now, but they also deserve reassurances that it will never, ever be allowed to happen again. Taxpayers’ money must be treated with respect, not handed out in backroom deals to cronies or used as a passport to profiteering.

PPE Medpro is just the tip of the iceberg in this scandal. We now know that companies that got into the VIP lane were 10 times more likely to win a contract. We now know that many did not go through the so-called eight-stage process of due diligence, as Ministers have now admitted, and we now know that this left dozens of experienced British businesses out in the cold—businesses that had the expertise to procure PPE and ventilators precisely and fast; businesses that offered their help in our darkest hour; businesses whose only mistake was to play by the rules.

Not a single one of the companies referred to the VIP lane was referred by a politician of any political party other than the Conservative party. The then Chancellor of the Duchy of Lancaster, the right hon. Member for Surrey Heath (Michael Gove)—the Cabinet member who oversaw the entire emergency procurement programme —reportedly fast-tracked a bid from one of his own personal friends and donors, who went on to win hundreds of millions of pounds of public money. Last week, he said he had simply referred the bid from PPE Medpro to officials; but we also know that he passed it on directly to his ministerial colleague Lord Agnew.

[Dawn Butler (Brent Central) (Lab)]

My right hon. Friend is making a thoughtful speech which puts every Conservative Member to shame. Is she as shocked as I was to learn that a company was put into the VIP lane by mistake, and still received a £1 million contract?

--- Later in debate ---

[Will Quince]

I am keen not to get into a political slanging match on this point, but my hon. Friend is right that all Members on both sides of the House were receiving multiple emails from people who, as my hon. Friend the Member for North Dorset (Simon Hoare) said, were panicking because they wanted to ensure that we procured PPE as quickly as possible.

Colleagues across Government and beyond worked day and night, taking tough decisions, to keep our country safe. Those efforts secured billions of items.

[Dawn Butler]

On civil servants, will the Minister give way?

[Will Quince]

No. I will come to civil servants in a moment.

--- Later in debate ---

[Will Quince]

I have given way equally to both sides so far in this debate. I have some reluctance to give way to Members who tell others to sit down while they are speaking or making interventions.

[Dawn Butler]

But are you giving way?

[Will Quince]

I said I will, and I will.

The efforts of civil servants secured billions of items and, by June 2020, we had obtained 30,000 ventilators and delivered more than 17.5 billion items of PPE to protect frontline workers. What does this mean in practice? It means that we were able to keep our NHS open throughout the pandemic; emergency operations went ahead; and once some of the toughest restrictions were eased, relatives could visit their loved ones in and around care homes.

[Dawn Butler]

I want to take the Minister back to where he mentioned civil servants. According to the Government’s own records, civil servants were begging Ministers not to give contracts to some of these companies because they had red flags and they were overcharging the Government—we are talking about almost double the price they agreed to be paid. This was an extra cost of £50 million to taxpayers. Civil servants were begging the Government not to act in the corrupt manner that they did.

--- Later in debate ---

[Will Quince]

I thank the hon. Lady for that response, and I know the Chancellor of the Duchy of Lancaster will soon begin that dialogue with her.

[Dawn Butler]

Will the Minister give way?

[Will Quince]

I have given way once before—

[Will Quince]

Thank you, Madam Deputy Speaker.

[Dawn Butler]

rose—

[Will Quince]

I have given way to the hon. Lady once already, as I promised I would, and I have been generous with my time, so I will not give way again.

--- Later in debate ---

[Dawn Butler (Brent Central) (Lab)]

I have a few points for the Minister of State, Department of Health and Social Care, the hon. Member for Colchester (Will Quince), who is no longer in his place. The National Audit Office did not have all the paperwork it needed to give a full and correct report. Therefore, when the Minister kept quoting the National Audit Office saying that due diligence was done on all companies, that is not correct. Also, the NHS published weekly consumption data during the pandemic, so the question is: how on earth did we come to buy five times more PPE than we actually needed? It makes no sense. There is a lot of evidence and paperwork on the Good Law Project website, just for the Minister’s reference.

The coronavirus pandemic has been a nightmare for everyone. It was a time of national pain and loss, and for some it was unspeakable. People lost loved ones, as I did, and it was also financially damaging for the country. It is absolutely shocking and unforgivable that some people saw this crisis as an opportunity to seriously line their own pockets, making money out of the misery we all went through. Let us be clear: this money is not free money. This money comes from working people through taxation, and the Government have been pickpocketing the working class to fund the lifestyle of the rich.

We still do not know the true extent of the misuse of public money, and that is why this motion is important. Even though I and many others have been asking questions for three years, what comes back from the Government is really quite sparse. We are having to piece together the information, and that is not good enough from a Government. They need to be transparent and honest, and the public deserve to know who was given public funds, how many had links to the Conservatives and what they were paid for. I often ask, “What were they paid for? What kind of PPE? How many, and how many did we receive?” The Minister never comes back with that information, so if the Minister has the facts and figures, broken down for each company, I would appreciate if he put that in the Library. According to the Minister last week, some companies were paid for PPE even though we had enough PPE in stock. I said, “Was that deliberate?” and he said yes. I think that is really quite strange—if we have enough PPE, why are you giving people more PPE?

[The Parliamentary Under-Secretary of State for Health and Social Care (Neil O’Brien)]

The hon. Member claims that we bought five times too much PPE. This is not the case. We did have 20% excess capacity against a worst-case scenario that, thankfully, did not materialise. But just to be clear to her, it is not the case, as she keeps saying, that we bought five times too much PPE. That is simply not the case.

--- Later in debate ---

[Dawn Butler]

I thank the Minister for that intervention. So can he just clarify: if the NHS was given weekly stats on how much PPE was needed, how come there is so much PPE in storage, which is costing £750,000 a day to store? Does the Minister want to come back? Oh, the Minister of State has walked in at the right time.

[Neil O’Brien]

The Minister of State did actually give the House some updated figures on that point. It is not the £750,000 figure the hon. Member just quoted. On this point, it is not the case that we bought five times too much PPE. She keeps saying that. It is not the case.

[Dawn Butler]

I suppose the facts will reveal themselves when the Minister shows us all the paperwork, leaves it in the Library and then we can go through the facts, the stats and the figures together. I look forward to that. We heard earlier today—[Interruption.] The Ministers are going through some figures now. I really think that, to resolve all of this, and to not even have this debate and conversation, they should put all the paperwork in the Library, we can all go through it together and that is what is needed.

[Sarah Owen (Luton North) (Lab)]

My hon. Friend is making a powerful speech and she has spoken with incredible experience and heart on this subject throughout the last few years. Does she agree it is particularly galling that we are seeing the former Health Secretary write a book, the “Pandemic Diaries”, yet we are not able to scrutinise the facts and evidence of the decisions that were taken not just about the public’s money but about public safety?

[Dawn Butler]

My hon. Friend makes an extremely valid point. I spoke in Committee this morning. I am not going to read the book but I think we have to scrutinise it and cross-check the information that the Minister gave in Committee against what is in the book. The new Ministers who have come into post should be a little more humble, because what has happened is shocking. The cronyism and the corruption that has happened in the Government in plain sight is truly shocking. The Government are now spending £10 million burning PPE. It is like they are burning the evidence—we wonder why. [Interruption.] Sorry, the Minister said that I have just criticised the Minister for storing PPE. He is right. I would not want the Minister to spend nearly £1 million every day storing PPE. I also do not want him to burn PPE. He should be using the PPE—give it to people who are travelling on the tube. We are having a flu epidemic and it will help to resolve that, so don’t heckle me when this is your responsibility—[Interruption.] I mean the Minister. Sorry, Madam Deputy Speaker. The Government are incompetent as well as corrupt and it is not just cronyism. The situation is so ridiculous—[Interruption.] Am I not allowed to call it what it is, Madam Deputy Speaker? It smells like corruption to me.

[Madam Deputy Speaker (Dame Eleanor Laing)]

Order. It is perfectly in order for the hon. Lady to say “incompetent”, but I would be grateful if she would find another form of words, rather than saying “corrupt”.

[Dawn Butler]

This is so ridiculous, Madam Deputy Speaker. When the Netflix series comes out, nobody is going to believe it is a true story. I know we are not supposed to speak about the Conservative peer too much, but we learn today that they are taking leave of absence from the Lords. I am not saying this in jest, but I hope she is not on her yacht trying to do a runner because a lot of money has gone missing. In a previous Minister’s own words, he was being “bullied” into giving this contract—[Interruption.] No, I don’t feel sorry for him, but he was being bullied. Two Ministers were being bullied, so it is important that we investigate the VIP lane.

As I said earlier, the National Audit Office said that companies were put there by mistake and were still given millions of pounds. Surely that shows us that due diligence was not done; the company was there by mistake. How did it get all that money? When the Minister gets to his feet, could he tell the House how many of these companies existed before the pandemic? If he cannot, of course, we look forward to that information being available in the Library or when this motion passes today, which I hope it does.

For the avoidance of any doubt, we all know that the VIP lane was a bit dodgy—that is just a fact and on record—but this has all come to light not because Parliament managed to force the Government to reveal everything that happened, but because a bank reported unusual activity and dropped a certain person and her husband in fear of reputational damage. That is what has brought this particular scandal to light and the National Crime Agency has now investigated.

As others have said, this is just the tip of a very large iceberg. The Serious Fraud office is also investigating contracts won by another company, Pharmaceuticals Direct Ltd, which paid a whopping £20 million fee to a middleman, Surbjit Shergill, who worked for Samir Jassal. Together, they had a hotline to the then Prime Minister’s special adviser, Munira Mirza. We also know—we have seen the emails—that they were helped by the right hon. Members for West Suffolk (Matt Hancock) and for Witham (Priti Patel).

If a company has to go through due diligence and believes that it is participating in a proper process, why would it agree to pay a politically connected middleman £20 million? That does not make any sense. If everybody is treated the same, there would be no need to pay somebody £20 million to move up the list. As you said, Madam Deputy Speaker, I cannot say the word “corruption” —I am trying to think of other words; hopefully more will come to me and I will use them—but it feels very much like cash for covid contracts. What happened to that money is a mystery. The Serious Fraud Office continues to investigate the case 18 months after it was referred.

I could speak about so many more cases. For those who are interested, there is a thread on my Twitter account about some of the other companies where there are huge questions to be answered. The Government need to open up their books and ensure that there is proper scrutiny. Yes, of course we accept that mistakes were made and that some of them were unavoidable, but the Department of Health and Social Care did not do the fraud checks that it was supposed to do; we had to push it, and that did not come out until a whole year later. There has been negligence, but there has also been something a little more sinister happening in Government.

Those people who stole money from the public purse during a national crisis should be ashamed. They should not say, “I was doing it for the country” as they are not when they are pocketing millions of pounds. It is not patriotic; it is a word that you are not happy with me using, Madam Deputy Speaker. Those people took the money unlawfully, really—they were helped by Government Ministers—and they will have had plenty of interest payments from their ill-gotten gains. Now is the time, during the cost of living crisis, to give that money back. That includes the donations given to the Tory party by those people who had a bung from the covid crisis—they need to come back into the public purse.

[Madam Deputy Speaker]

Order. I will have to put on a time limit of four minutes.